Bitcoin drops $60B from market cap as investors shuffle funds into ETFs
When the SEC finally approved spot bitcoin ETFs, bullish investors anticipated a flow of new money into bitcoin. Instead, it appears that investors have been more interested in reshuffling their money. A cursory view of trading activity in the newly-listed Bitcoin ETF s could give the impression that they are quite popular. Within three days, trading volumes exceeded $10 billion — far outpacing transactions of any other ETF s launched within the last 12 months. The reality, however, is that money has actually flowed out of bitcoin since the approvals, and bitcoin’s market capitalization has declined by over $60 billion. As sophisticated invest ors who bought the rumor sold the news, most Bitcoin ers simply rotated existing Bitcoin invest ments into the ETF s. New spot ETF cash inflows less than 0.1% of bitcoin’s market cap Record trading volumes in spot bitcoin ETFs According to Bloomberg analysis, as of this week, the combined trading volume of 500 non-bitcoin ETFs th...